Could These 3 "Recession-Proof" Dividend Stocks Surge 100% by 2031?

• Microsoft is simply a terrific maturation banal with an fantabulous dividend program.

• Johnson & Johnson and Coca-Cola are some outstanding dividend payers.

• However, neither has the high-growth outlook that Microsoft sees ahead.

• 10 stocks we similar amended than Microsoft ›

Fears of a recession did not materialize this year. However, it's ever worthy it for investors to bargain shares of companies that tin execute good during economical downturns. Solid dividend stocks that routinely summation their payouts are particularly charismatic successful that regard, since they thin to person businesses equipped to withstand challenging times.

Let's sermon 3 stocks to bargain to hole your portfolio for immoderate recession that whitethorn laic ahead: Microsoft (NASDAQ: MSFT), Johnson & Johnson (NYSE: JNJ), and Coca-Cola (NYSE: KO). Two of them are Dividend Kings, corporations that person achieved astatine slightest 50 consecutive years of dividend increases. All 3 are coagulated dividend payers.

But could they emergence by 100% successful the adjacent 5 years? Let's find out.

Microsoft has moved sideways for the past six months. With a marketplace headdress of $3.5 trillion, immoderate mightiness reason that its high-growth days are down it. But Microsoft inactive has plentifulness to connection growth-oriented investors and, successful my view, is well-equipped to registry the 14.9% compound yearly maturation complaint (CAGR) indispensable implicit the adjacent 5 years to treble successful value.

The company's enactment successful unreality computing and artificial quality (AI) looks particularly promising. Microsoft's gross from its unreality division, Azure, is increasing rapidly, arsenic is its contracted backlog, which is simply a beardown denotation that request for the services Microsoft provides remains high.

One of the company's astir notable partners is OpenAI, from which it precocious secured a $250 cardinal Azure commitment. Through 2032, Microsoft volition person intelligence spot rights to OpenAI's models (still among the marketplace leaders) and products.

Being capable to connection OpenAI's models to its customers done Azure is simply a important selling constituent for Microsoft, and it is apt 1 of the reasons it has been gaining crushed connected Amazon, the person successful unreality computing. From the looks of it, this tailwind volition stay intact done the adjacent fewer years.

Microsoft remains a terrific maturation stock, and the dividend is astir a bonus. The institution has accrued its payouts by 152.8% successful the past decade.

Several things marque Johnson & Johnson an fantabulous "recession-proof" stock.

First, since it sells healthcare products, including pharmaceutical drugs that stay successful precocious request careless of economical conditions, it tends to make accordant gross and profits, adjacent during economical downturns. Patients won't privation to chopped down connected lifesaving drugs, and it besides helps that third-party payers ft a batch of the bill.